US SB2538

Creates a new 30% investment tax credit for disaster mitigation projects on working waterfront properties, capped at $300,000 per taxpayer (adjusted for inflation after 2026)

Eligible projects must comply with International Building Code standards and include measures such as structural elevation, flood risk reduction, shoreline stabilization, floodproofing, retrofitting, or warning systems

Working waterfront property is defined as real property in the U.S. used for water-dependent businesses (commercial fishing, recreational boating, boatbuilding, aquaculture, dredging) with average annual gross receipts not exceeding $47 million

Taxpayers may only claim the credit once per 10-year period, and the credit applies to tangible depreciable property placed in service after December 31, 2025

Treasury Secretary must issue regulations in consultation with FEMA and make payments to U.S. territories to compensate for revenue losses from the credit